•  
  •  
  •  
  •  
  •  
  • Untitled Document
    Untitled Document

    Ryland enters third farm-out agreement to test Bakken formation

    February 27 -Ryland Oil Corp., through its wholly-owned subsidiary Pebble Petroleum Inc., has entered into a new farm-out agreement with Calgary-based TriAxon Resources respecting an additional 53.25 sections of Pebble's acreage adjacent to the Flat Lake Bakken oil field in southeast Saskatchewan.
     
    This is the third farm-out agreement between the company and TriAxon. Under the new agreement, TriAxon is required to spud two test wells, one by August 1, 2009 at a location of its choice on Exploration License EL 812 and the second by October 15, 2009 at a location of its choice on Exploration License EL 811.
     
    TriAxon may elect to drill either vertical stratigraphic test wells or horizontal wells to test the Bakken formation. TriAxon must pay 100% of the costs to drill, complete and equip or abandon the test wells to earn a 50% working interest in the Bakken formation underlying the test well section. In the event a vertical stratigraphic test well is drilled, TriAxon will also earn a 50% working interest in the Bakken formation underlying an additional four contiguous sections. In the event a horizontal test well is drilled, Triaxon will earn a 50% working interest in the Bakken formation underlying an additional ten contiguous sections. Pebble will retain a 100% working interest in all other zones.
     
    After drilling the initial test wells, Triaxon has the continuing option to drill additional earning wells at locations of its choice on the remaining farm-out lands to earn on the same basis as the test wells. If any wells are subsequently drilled on acreage in which TriAxon has earned its 50% working interest, each of Pebble and TriAxon will be responsible for payment of 50% of the costs of such wells and hold a 50% working interest, subject to the provisions of the operating agreement between the parties.

    In addition to entering into the new farm-out agreement, Pebble and TriAxon have amended the earning provisions in their 22 section farm out agreement entered into in October of 2008. TriAxon has earned the Bakken rights underlying five sections by drilling a second test well under that agreement, after its initial well had to be abandoned for technical reasons. Pursuant to the amending agreement, TriAxon will earn 17 sections (as opposed to 11 sections) if it drills a third well as a horizontal well.
     
    In addition, the spud date for the third well has been extended to January 31, 2010 so as to follow the two test wells to be drilled pursuant to the new farm out agreement. TriAxon's second test well completed under that farm-out agreement has very recently been put on production at approximately 90 bopd with an increasing oil cut trend.

    Related Articles

    Production from Bakken, Eagle Ford rose 3.4% in July

    08/25/2014 Oil production from shale formations in North Dakota and Texas increased by more than 86,000 barrels per day (b/d) or 3.4% in July, according to Bentek Energy, an analytics and forecasting unit of ...

    Intervale Capital acquires Recapture Solutions

    08/19/2014

    Intervale Capital has acquired Recapture Solutions LLC from Triten Corp. 

    Dakota Plains, Hiland to link Bakken gathering pipeline to terminal

    08/19/2014 Dakota Plains Holdings Inc. and Hiland Crude LLC, a wholly owned subsidiary of Hiland Partners LP, jointly report the execution of an interconnection agreement that links Dakota Plains’ Pioneer Rai...

    Liberty Resources II signs Bakken asset transaction agreement

    08/05/2014 Liberty Resources II LLC reports the signing of a definitive agreement with Emerald Oil Inc. to exchange a portion of its holdings in North Dakota's Williston Basin for additional acreage in the Wi...

    Weir Group acquires Metra Equipment

    08/01/2014 The Weir Group plc has acquired Metra Equipment Inc., a wellhead supplier based in Saskatchewan, Canada, for an undisclosed consideration. The company will be part of Seaboard, a business of Weir O...

    More Oil & Gas Financial Articles

    Production from Bakken, Eagle Ford rose 3.4% in July

    Mon, Aug 25, 2014

    Oil production from shale formations in North Dakota and Texas increased by more than 86,000 barrels per day (b/d) or 3.4% in July, according to Bentek Energy, an analytics and forecasting unit of Platts.

    Intervale Capital acquires Recapture Solutions

    Tue, Aug 19, 2014

    Intervale Capital has acquired Recapture Solutions LLC from Triten Corp. 

    Dakota Plains, Hiland to link Bakken gathering pipeline to terminal

    Tue, Aug 19, 2014

    Dakota Plains Holdings Inc. and Hiland Crude LLC, a wholly owned subsidiary of Hiland Partners LP, jointly report the execution of an interconnection agreement that links Dakota Plains’ Pioneer Rail Terminal in New Town, North Dakota, with Hiland’s Market Center Gathering System crude oil pipeline network.

    Liberty Resources II signs Bakken asset transaction agreement

    Tue, Aug 5, 2014

    Liberty Resources II LLC reports the signing of a definitive agreement with Emerald Oil Inc. to exchange a portion of its holdings in North Dakota's Williston Basin for additional acreage in the Williston Basin and $78.4 million in cash.

    Weir Group acquires Metra Equipment

    Fri, Aug 1, 2014

    The Weir Group plc has acquired Metra Equipment Inc., a wellhead supplier based in Saskatchewan, Canada, for an undisclosed consideration. The company will be part of Seaboard, a business of Weir Oil & Gas’ Pressure Control Segment.

    Most Popular

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ